Binance and Bybit in Emergency Move to Save Crypto market

After witnessing the collapse of FTX, the crypto industry is in a state of panic, with both firms and individuals in a state of disarray.

Resultantly, investors are holding tightly to the funds they already have in their possession.

This means a reduction in investments and reduced streams of capital flow.

In response, Binance and Bybit have announced that they will support investors’ initiatives in the field. This brought some much-needed relief after long periods of speculation and uncertainty.

Bybit made an announcement on November 24 about the creation of a new support fund aimed at institutional traders, market makers, and high frequency trading organizations in financial or operational distress in the wake of FTX’s demise earlier in the month.

Resultantly, a $100 million support fund was made available to assist the ailing firms to recover.

The situation was made worse by investors making emergency decisions to unload their holdings by selling to avert further financial calamity.

This resulted in a sales spike during the collapse, making thee market liquidity state even worse. Those qualifying to receive the funds will have them availed to them at no cost to themselves.

To complement this, Binance announced the launch of a program named the Industry Recovery Initiative, or IRI.

With this, Binance announced that they have a $1 billion commitment to the fund, with another $1 billion available to be added in the near future.

An additional initial commitment of $50 million was pledged from key industry players such as Polygon ventures, Jump Crypto, Animoca Brands, Kronos, GSR, Brooker Group, and Aptos labs. Binance availed that another 150 businesses have applied to join.

IRI is more of a co investment option for companies interested in Web3’s long term success. Partakers are expected to publicly commit funds.

Despite the crypto industry being rocked by the FTX saga, many tend to believe that that the industry will likely recover.